What is the recipient of the loss?

Loss is a person or entity who receives a insurance payment in case of loss. The income from the loss is third parties to be directly insured aside. A classic example of a situation where a recipient of losses is used is when a financial institution offered a loan to finance the purchase of a car. To ensure complete repayment of the loan, the financial institution will insist that it is appointed recipient of the losses from the car insurance contract for the car so that if the car is in total, the loan will be paid in full. This system is also used for certain types of transport insurance. Being named as a recipient of losses reduces the risk that someone will leave a loan or other obligation in the event of a loss, because the recipient of the loss will be paid in full after the loss. The settlement is sent directly to the recipient of the loss and the insured party does not receive any money from the insurance company. Once the amount of any outstanding debt is settled, it maybe the rest of the insured side.

As soon as the financial interest is terminated, as if the lien is canceled, the third party may be removed from the insurance contract as the recipient of the loss so that any payments pass directly to the insured. When people end up and repay loans for insured assets, it is important to ensure that the new title is issued without a lien and that the creditor is removed from the insurance contract and other documents related to the assets. This will reduce the risk of confusion if there is losses, damage or theft.

Term -related is "other insured". In some cases, the party may be appointed as a recipient of losses and other insured. This party is added to the insurance contract to be adopted in the event of an action. In a simple example, when people rent vehicles and get in accidents, it is possible for the driver to be sued and leasIng's company. By demanding that drivers name them as another insured in the field of politics, leasing companies can have insurance to protect if there is an action.